Correlation Between Apeejay Surrendra and Lemon Tree
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By analyzing existing cross correlation between Apeejay Surrendra Park and Lemon Tree Hotels, you can compare the effects of market volatilities on Apeejay Surrendra and Lemon Tree and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Apeejay Surrendra with a short position of Lemon Tree. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apeejay Surrendra and Lemon Tree.
Diversification Opportunities for Apeejay Surrendra and Lemon Tree
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Apeejay and Lemon is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Apeejay Surrendra Park and Lemon Tree Hotels in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lemon Tree Hotels and Apeejay Surrendra is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Apeejay Surrendra Park are associated (or correlated) with Lemon Tree. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lemon Tree Hotels has no effect on the direction of Apeejay Surrendra i.e., Apeejay Surrendra and Lemon Tree go up and down completely randomly.
Pair Corralation between Apeejay Surrendra and Lemon Tree
Assuming the 90 days trading horizon Apeejay Surrendra Park is expected to under-perform the Lemon Tree. In addition to that, Apeejay Surrendra is 1.16 times more volatile than Lemon Tree Hotels. It trades about -0.02 of its total potential returns per unit of risk. Lemon Tree Hotels is currently generating about 0.05 per unit of volatility. If you would invest 9,230 in Lemon Tree Hotels on September 1, 2024 and sell it today you would earn a total of 3,829 from holding Lemon Tree Hotels or generate 41.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 54.77% |
| Values | Daily Returns |
Apeejay Surrendra Park vs. Lemon Tree Hotels
Performance |
| Timeline |
| Apeejay Surrendra Park |
| Lemon Tree Hotels |
Apeejay Surrendra and Lemon Tree Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apeejay Surrendra and Lemon Tree
The main advantage of trading using opposite Apeejay Surrendra and Lemon Tree positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apeejay Surrendra position performs unexpectedly, Lemon Tree can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lemon Tree will offset losses from the drop in Lemon Tree's long position.| Apeejay Surrendra vs. Foods Inns Limited | Apeejay Surrendra vs. Sudarshan Chemical Industries | Apeejay Surrendra vs. JGCHEMICALS LIMITED | Apeejay Surrendra vs. Krebs Biochemicals and |
| Lemon Tree vs. Infomedia Press Limited | Lemon Tree vs. Shemaroo Entertainment Limited | Lemon Tree vs. Ravi Kumar Distilleries | Lemon Tree vs. Baazar Style Retail |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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